Things to know when entering the virtual currency market in 2022

The virtual currency market has gone through a period of great development in the past 2 years, but recently most cryptocurrencies have been on a downward trend in value. In this article we will update the new entrants to the virtual currency market in the period of 2022.

The first thing you need to remember is that the virtual currency market contains many risks, like you buy land and encounter unrealistic projects, livestock encounters when the epidemic occurs.

This is the truth, it’s just that the media deliberately doesn’t report it so you just take it lightly, but the virtual currency market always changes in the value of each virtual currency, so you are used to press headlines like : bitcoin bubble about to burst, losing all assets because of virtual money, young people and virtual money dream. This is the truth and you should believe it. However, this is a one-sided view, so those who are empty-handed because of real estate investment, go bankrupt because of investing in agriculture. Everything is still an investment, and investing in anything is risky, even getting married does not know if your future will be happy when you have been in love for 10 years, so don’t tell us that virtual currency is a stupid investment, because many people have made money, and there are even people who have made a lot of money from the virtual currency market.

Stand your ground in the cryptocurrency market

Do not trust anyone in the virtual currency market, knowledge is yours to learn, not listen, do not fomo. In the virtual currency market, there used to be DBZ coin, that project was completely worthless to us, but the group still advertised enthusiastically, as a result the token lost all its value and disappeared. from the cryptocurrency market. Some people even messaged us, and advised us to buy a virtual currency called Raca while it has x600 times, of course Raca is an extremely good project when we initially invest, but when If a project has grown too high in value, you should be rational, and know that even if it has x2 price when you buy it, then it must be x1200 times the price other people buy it and people will sell them off. recently. So rationally look for projects that not many people know but have potential, or simply invest in floor coins, top coins, platform coins with large capitalization but the price still has room for development.

Know how to allocate capital and stay calm

In the virtual currency market we are not allowed to have a revenge mentality when losing, and do not invest all of our capital in any one project. This will help you minimize the risk of losing your pocket, if you hold 3 coins and only need 1 x2 or x3 coin, you’ve already kept your capital, don’t invest all in one project because we I don’t know which token will increase rapidly in value, so don’t put all your money into any one project. No successful businessman pours money into a single project.

Always have the spirit to learn

The last thing is to learn a lot of virtual money, investing is risky, but investing in yourself is the best. You need to know the basics such as viewing project information, testing teams, testing tokenomics, and checking if the project has partners? What problem does the project solve and is it suitable for development now or in the future?

The above are the things we need to pay attention to when we want to invest in the virtual currency market in 2022, but our judgments need to add a lot in the near future. We will update more when we receive your sincere comments.

Square publishes whitepaper for Bitcoin exchange DEX

Twitter CEO Jack Dorsey’s payments company Square has posted a whitepaper for a Bitcoin-powered decentralized trading platform.

On November 20, the TBD research arm of Square, a payments company that shares CEO Jack Dorsey with Twitter, published a whitepaper that outlines the concept of building a decentralized exchange platform ( DEX) between Bitcoin and many other coins, named tbDEX.

Unlike traditional DEXs, tbDEX claims from the start that their model will be less decentralized when it comes to requiring users to verify their identity (KYC) in order to comply with national laws. In addition, the project also states that it has no intention of issuing its own token, meaning that the governance of the protocol will be decided by TBD.

Outline of how tbDEX works

However, TBD insists this is just a preliminary sketch to get input from the crypto community, not claiming that Square will turn the idea into reality.

A longtime Bitcoin supporter, Jack Dorsey first revealed his ambition to build a decentralized exchange in August of this year. His Twitter social network later also supported Bitcoin wallet account integration, allowing users to make BTC transfers, as well as create research groups to explore crypto applications. other chemical.

However, another senior Twitter leader, CFO Ned Segal, denied that the social network is about to put money into Bitcoin, saying that the current time is not suitable to participate in cryptocurrency investment. . Meanwhile, Square has spent up to 220 million USD to invest in Bitcoin at the end of 2020 – early 2021 and is earning more than 2 times the profit.

HTC Exodus 1s Released With Bitcoin Trading Capability

HTC recently released the Exodus 1s, a smartphone that can independently authenticate and transmit Bitcoin transactions. Users can even buy, sell, exchange, trade, lend and borrow Bitcoins on Exodus 1s.

The special feature of HTC Exodus 1s is the ability to trade Bitcoin cryptocurrency. According to HTC, this is made possible by support for 400GB SD memory cards (sold separately) and TEE, a hardware expansion that works separately from the operating system to ward off malware.

The HTC Exodus 1s also comes with a ‘Web 3’ browser and Zion Vault (software that allows storing, sending and receiving various cryptocurrencies). Users can log into accounts as well as authorize transactions with their fingerprints.

In terms of specifications, HTC Exodus 1s is equipped with a 5.7-inch screen, a Qualcomm Snapdragon 435 processor, 4 GB RAM and 64 GB ROM. The camera system includes a 13MP lens on the back and a 13MP lens on the front. Built-in battery has a capacity of 3,000 mAh, supports 4G LTE connectivity.

Exodus 1s is priced at 250 USD in the European market. HTC will expand this product business to other markets including UAE and Taiwan. There is currently no word on an international launch, but it will be soon after the company releases it in Taiwan.

Distinguish between Coin and Token

Coin and token are two concepts in the blockchain world. Many users are confused about these two cryptocurrencies.

Users often use the terms coin and token to refer to cryptocurrencies. However, the concept and working mechanism of coins and tokens are different.

Coin works on an independent platform

Cryptocurrencies were created to be used like regular cash. In particular, the coin helps users to pay for goods and services. At the same time, they can be split into odd parts like 0.000067 Bitcoin.

In a word, coin is a type of digital asset, operating on its own blockchain. For example, Bitcoin works on its own blockchain, Ether runs on the Ethereum network.

Some popular coins are Bitcoin, Ether, Litecoin, Dogecoin, Monero… all developed on an independent blockchain platform. Besides, the creation of coins takes quite a while to research. Developers can manage the coins’ supply, how secure they are, and how they work.

Users are allowed to transfer coins on the same network. However, users cannot transfer coins from one network to another. This means they cannot sell Bitcoin and buy Litecoin on the same Bitcoin blockchain network.

From there, exchanges (such as Binance, Coinbase) are intermediaries, helping users trade on each of these coins’ private networks. With coin, users can use it with two functions: exchange and pay transaction fees. In terms of storage, users need to use a blockchain-compatible wallet to store coins.

Tokens are developed on the existing blockchain platform

Tokens represent a type of digital asset. The token has no independent infrastructure, it is developed on top of existing blockchains. Some common tokens are Tether (USDT), Uniswap (UNI), Chainlink (LINK), Polygon (MATIC).

Besides centralized exchanges, investors can also use tokens on decentralized applications (DApps). Users can hold these tokens to use platform utilities, trade, stake (lock tokens on the platform and receive interest) or participate in platform governance… For example, users hold NEAR utility token to participate in staking, pay transaction fees, and store data on Near Protocol.

Tokens are divided into many different categories including security tokens, utility tokens, transaction tokens, non-fungible tokens (NFT), governance tokens. In it, the NFT usually represents a separate, indivisible asset class. Development teams often use this token to release works of art because of its nature.

Polygon is one of the cryptocurrency platforms running on the Ethereum blockchain, providing fast, low-fee transactions. Moreover, from 2021, a large number of DApps are developed on the Ethereum blockchain, using smart contract code. These tokens often use ETH for internal network fees.

Tether (USDT) is a token developed on multiple blockchains, to speed up transactions and help users reduce costs. Therefore, the token does not depend on a certain blockchain, has flexibility, making it easier for users to transact.

According to Business Insider, DApps using tokens are said to be easier to develop than coins. This has led to an explosion of decentralized applications and non-fungible tokens (NFTs).

DeFi is considered a financial instrument using cryptocurrencies. Users can buy tokens and lend to earn higher returns than bank savings. With token storage, users can use it with a coin wallet but need a wallet address with a corresponding platform.

Scam Tokens

Junk tokens are generated on the Binance Smart Chain and Ethereum platforms, which take only a few hours to complete. Besides, anyone can create cryptocurrencies that work on these blockchains.

On decentralized exchanges, fake tokens often appear. Scammers can manipulate the price, withdraw the liquidity of this digital currency for personal profit, causing investors to lose all their assets.

Find out what a futures contract is?

Although quite similar to a few points with options contracts in the payment method and the subject is investors. But it’s a lot of differences. Let’s find out with Blogtienao and make your own assessment.

What is a futures contract?

A future contract is a legal agreement to buy or sell a particular asset and secure it at a predetermined price at a specified time in the future. Assets here include goods, stocks, stocks, and currency.

It is standardized in quality and quantity to facilitate trading on a futures exchange. Often used to prevent price volatility of an asset to help prevent losses due to adverse price swings.

Futures allow an investor to speculate on the price direction of a security, commodity or financial instrument, long or short and use appropriate leverage.

The investor anticipates that a bull market will open a position to buy futures contracts. When the market rises as expected, investors will get profits. Conversely, an investor can open a short position on the futures contract to make a profit in the bear market.

How futures contracts work

As I mentioned in the introduction, this is also the product of derivative securities. The predetermined price level at which the parties agree to buy and sell assets is called the forward price. Time is indicated in the future. It is the time when property is transferred and payment occurs, called the delivery date.

Act as a marketplace between buyers and sellers. In which the two parties have the following obligations:

– Buyer: Buying and receiving assets when the futures contract expires.

– Seller: Offer and deliver the property on the expiration date.

Futures provide an opportunity for speculation in which a trader predicts that the price of an asset will move in a particular direction. They can sign a contract to buy or sell it in the future at a price (if the prediction is correct) that will be profitable.

Especially, if the speculator has a profitability. Commodities that the speculators trade for have been stored for a long time and sold for as long as they need. Provide consumers with a more favorable distribution of goods.

Content in a contract

Futures, which you can easily trade and trade, are standardized. Each futures contract will typically designate the following components:

– Commodities

How the transaction will be settled: By actual delivery of a certain quantity of goods, or with a cash payment.

– Quantity of goods to be delivered or insured under the contract.

– The currency in the contract has a face value.

– Currencies in futures contracts are quoted.

– Time of transaction.

Types of futures contracts

We will share the group of assets for everyone to understand:

Group 1: Financial futures contracts

This group includes the following asset classes:

Stock index: Affected by the way the stock market works. When stocks are under selling pressure, so do stock indices. The opposite is true of buying pressure. Interest rates can also have an effect on stock indices. Higher yields in those products create a money competition in search of safer investments.

Money markets: May be affected by interest rates around the world. Capital tends to shift to the money market with the country with the highest interest rates. Geolocation can also have an impact on currency prices. A well-functioning government makes investors feel safer investing in that country’s currency than a country with chaos.

Interest rates: A country with an expanding economy can give its central bank reason to believe that inflation is on the horizon. Then they started raising interest rates to slow down expansion. If the economy of a country is contracting, its central bank can lower interest rates to try to stimulate their economy with cheaper lending, allowing firms to increase income again. again.

Group 2: Physical commodity futures

The market in this group 2 is more advanced than the first group. There are many factors that can influence these markets to change prices. Factors like weather, politics, geography (tariffs, strikes, etc.), even diseases that affect crops and livestock can all affect prices.

In this group will include the following assets:

Energy: For example, crude oil has two by-products, gasoline and hot oil. Depending on the time, crude oil demand is determined by several factors. However, other factors such as refinery fires, shutdowns, etc. can also disrupt supply distribution and cause price reactions.

Metal market: Very diverse, here you will find gold, silver, copper and platinum. Central banks around the world keep gold in their warehouses to fight any potential inflation.

– Agricultural products: may include cereals and livestock. Both are hit hard by seasonal patterns that can drive prices up or down.

– Soft goods: Including goods such as sugar, cocoa, coffee, cotton and wood. Most are low volume and usually not traded by smaller traders. However, they are commodity products that we use every day in our lives and that means that the basic factors of supply and demand still affect the prices of these products.

How to trade futures contracts

It is relatively easy to start futures trading. Open an account with a broker that supports the markets you want to trade. A prospective broker will probably ask about your experience with investment, income and net worth. These questions are designed to determine the level of risk the broker will allow you to take, in terms of margin and positions.

There is no industry standard for awarding commissions and fees in futures trading. Each broker offers different services. Some offer lots of research and advice. While others simply provide you with quotes and charts.

Some websites will allow you to open a trading account. You can practice paper money trading before you actually commit to your first transaction. This is a way to test your understanding of the futures market and how it works, as well as the leverage and commissions with your portfolio.

If you are a beginner, I recommend spending some time trading in a virtual account until you are sure you understand it.

Even experienced traders will often use virtual trading accounts to test a new strategy.

Evaluate the pros and cons of futures trading

Advantages

– Investors can use futures contracts to speculate in the direction of the price of an underlying asset. My assets are listed in the section of the contract.

Firms can hedge the prices of the raw materials or products they sell to protect against adverse price movements.

– Futures contracts may only require a partial deposit of the contract amount with the broker.

Defect

– Investors are at risk that they may lose more than the initial deposit due to leveraged futures contracts.

Investing in a futures contract can cause a company to miss out on favorable price movements.

Margin can be a double-edged sword meaning high profits come with big losses.

Risk of margin trading and leverage

Many speculators borrow a substantial amount of money to play the futures market. That is the main way to exaggerate small price movements to be potentially profitable. But borrowing also increases the risk. If the market goes against you you could lose more than you invested.

Leverage and margin rule are much more liberal in futures trading. The greater the leverage, the greater the profit, but the potential loss is also greater.

Futures trading, over commodities

Commodities represent a large part of the futuristic trading world. You can also trade futures of individual stocks, stocks of funds, bonds or even Bitcoin. Some traders prefer futures trading because they can take a significant position (amount invested). That gives them greater leverage potential.

Most investors think about buying an asset. It is then predicted that its price will increase in the future. But short selling always makes investors do the opposite. They borrow money to bet the price of an asset will fall so they can buy it later at a lower price.

There is always a risk associated with any form of transaction. So we have introduced to you the article about futures contracts.

Understand Bear Markets and Bull markets

What does the bear symbol mean in the stock market as well as in the cryptocurrency market. We often hear the terms “bull market” and “bear market” in technical analysis, so what exactly is it, let Kada 4 Web Coin learn through the article below.

Most famous of all, it is a huge cow statue standing on the side of the road leading to Bowling Green Park, very close to Wall Street, so it is also known as the Wall Street Bull.

This bull is a sculpture by artist Arturo Di Modica, in heroic bronze that symbolizes the power of Americans to do business after the 1987 Wall Street stock market crash.

This cow appeared on many sidewalks of New York City but then has stood firm on the side of Bowling Green Park since December 15, 1989. Bull headed toward Broadway, known as the capital of American theater. Mr. Di Modica described the bull in a state ready to plunge forward, kicking all barriers to symbolize the acceleration and strong development of the stock market. Over time, the bull statue became more and more famous with the development of the New York stock market. No tourists visit Wall Street Financial District but forget to visit cows, take commemorative photos with cows.

Famous bull symbol on Wall Street

So what is “bear market” and “bull market”? What does it show market trends and say what? Here, let’s learn about these terms.

Concept

Bull market refers to a market that is on the rise. That is characterized by a steady increase in the market price of shares. During the time when the market is a “bull”, investors believe that an uptrend will continue.

A bear market is one that is in decline. CP continuously dropped and as a result, a slippery trend that investors believe will continue for a long time.

Characteristics of the market

Securities supply and demand

In a bull market, the demand for stocks is higher than the supply. In other words, many investors wanted to buy, while very few wanted to sell. As a result, the share price increases. In the bear market, meanwhile, more people want to sell than buy. Demand is significantly low compared to supply and inevitably leads to lower CP prices.

Investor psychology

In the bull market, most investors are interested in the market, ready to participate in the market hoping to make a profit. On the contrary, in a bear market, investor sentiment is negative, causing them to flee the market and this sometimes pushes the market down further.

Change in economic activity

A bear market is often associated with a weak economy, when most firms are not highly profitable. This drop in returns will, of course, directly affect the way the market values ​​the shares. In a bull market, the opposite happens.

Where do these terms come from?

There is actually no exact information about the origin of these terms, but here are the two most popular hypotheses:

About the characteristic of the morphology

Bears and bull markets are named in the way that these animals attack their victims. A gaur’s characteristic attack is that it raises its horns up front and attacks the front, while a bear will hit its victim hard.

Historically

The middlemen in the bear skin trade will sell the skins they never received, and in today’s terms, they are the short-sellers. securities decreased). After agreeing and fully committing to customers for the up-paid bear skins, these brokers will expect the price to buy bear skins from hunters in the near future to drop lower than current price. If that discount does happen, they will get a personal gain from the difference between the two prices. These middlemen are known as “bear”, short for “bearskin jobber”. And since then the term has been widely used to refer to someone wanting or expecting a market to go down.

Instructions for joining IFO on Pancakeswap

Since the introduction of cryptocurrencies more than 12 years ago, significant developments have changed the types of fundraising events that have been used, such as before ICO projects were heavily reliant on backing. VC, this is a slow and complicated process. The ICO phase revolutionized the way funds are raised, shortening the process of attracting venture capitalists (VC). The original system to get VC’s has proven to be a lengthy process for blockchain-based projects.

To address this issue, exchanges have stepped in to help fundraising projects safely and transparently, most notably the Binance exchange.

Recently, the wave has shifted to the decentralized financial (De-Fi) sector of the cryptocurrency market. The most prominent used Dapp platforms are DEX platforms like PancakeSwap and StreetSwap, which introduced an innovative token issuance service called IFO.

What is an Initial Farm Offering (IFO)?

IFO is a whole new type of fundraising activity that uses farming events to raise funds for participating projects. Users will need to provide liquidity to the BNB-CAKE pool to receive the corresponding LP token, and then join IFO with this LP token.

With the help of IFO, users can participate in a “pre-sale” held through the DEX to receive tokens before being listed on the respective exchanges. Usually, DEXs will thoroughly check projects before organizing IFO. Although it has passed the verification process, this does not guarantee the success or integrity of the token, as users must always consider outside BSCNews carefully when making their investment decisions. The IFO process benefits both new projects, PancakeSwap, and its users. IFO allocates farming rewards to PancakeSwap users and gives new projects an incentive to liquidity on PancakeSwap. This system allows to generate sustainable profits for PancakeSwap users and it creates initial liquidity for the respective token. On top of that, half of the money raised will be burned in CAKE if the sale is completed.

IFO has similar characteristics and is different from the two popular fundraising methods today, IEO and ICO. All three of these methods are ways to raise funds for crypto projects. These token issuance methods are usually performed on an exchange, sometimes on project websites or other “pre-sale” methods are used.

How to join IFO

Steps to join IFO on PancakeSwap:

Step 1: Go to https://PancakeSwap.finance/profile, to complete the basic information before joining IFO

Step 2: Stake CAKE and BNB go to the liquidity pool to receive LP token.

Step 3: While IFO is in progress, users can use their LP token to buy tokens that are being sold for sale.

Step 4: After IFO ends, users can receive the purchased tokens and, the unused CAKE-BNB LP tokens will be returned to the user’s wallet.

Difference between Basic Sale and Unlimited Sale

In the Basic Sale pool, users can deposit up to about 100 USD CAKE-BNB LP tokens. PancakeSwap will calculate the maximum LP amount approximately 30 minutes before each IFO. There is no entry fee for Basic Sale.

Unlimited Sale has no limit on the number of CAKE-BNB LP Tokens that a user can deposit. However, users will have to pay a certain fee if they want to participate. Participation fees will start at 1%, and this fee will likely decrease based on the amount of CAKE-BNB LP tokens deposited by the user.

Summary

PancakeSwap continued to innovate on their platform with the launch of the IFO feature. The system rewards both new projects and PancakeSwap users as the process creates liquidity for new projects and burns CAKE tokens. Overall, IFO is used to fund new decentralized protocols on BSC. This system provides a seamless way for new projects to launch into the DeFi space.

How to use Volume Profile in the crypto market

It is important to define support and resistance zones for every trader, and currently we have many ways to define these zones, such as using MAs, trendlines, or connecting areas with multiple peaks or bottoms together and one indispensable indicator is the Volume Profile. Today, Bitcoin Magazine will introduce you to the Volume Profile indicator, and how to apply it in the tradecoin.

About Volume Profile

The Volume Profile indicator is an extremely powerful tool that traders can use to improve the effectiveness of their trading strategies.

It is extremely versatile and can be used for a variety of purposes, including finding areas of support and resistance, as well as finding areas where we can expect rapid price movements. fast.

This is an indicator that shows trading activity over a specific period at certain prices. That is, it shows what was bought and sold at those current levels and displays them in a chart that usually appears on the right side of your chart.

On the first time you choose the VPVR indicator, you’ll notice three options: Fixed Range, Session Volume, Visible Range.

I recommend Visible Range as it’s easiest to use and doesn’t require setting up any fix points before use. The rest of this article will guide you to use the Volume Profile Visible Range indicator abbreviated as VPVR (Volume Profile Display Range).

How to use the Volume Profile Visible Range (VPVR) indicator

When using the VPVR indicator, you need to keep in mind the following parameters:

POC: Point of control – the largest / longest volume button on the profile volume, key strength / level.

HVN: High volume node – longer than the average bar on the chart, this is the price point significantly higher than the average trading volume occurred.

LVN: Low volume node – shorter than the average bar on the chart, which is a point where the level is significantly lower than the average trading volume that occurred.

VA: Value area – a highlighted part of VPVR or another color indicating that this area is where 70% of the volume of the trade occurs for this part of the chart, as shown by the red and green bars in the chart below.

TRX / BTC 4-hour chart | Source: TradingView

Together we will analyze the TRX / BTC chart, some symbols in the chart above, highlight some definitions and keywords. First, we will look at the volume button marked POC, which is one of the notable levels, as it serves as a strong support for TRX on this chart. Most prices traded around this POC bar, and then a strong rebound above the POC however the price stopped in the HVN zone, which is a high volume trading zone, and it also plays a role. is the resistance of TRX price. Looking at the chart, you can see that the TRX price is likely to trade in the range from the POC volume button to the HVN volume button.

Continuing to move up the top of the chart, we have highlighted some LVNs representing very low volume places. And price usually moves faster in LVN and slower in POC and HVN.

Looking at the chart, it is clear that the TRX price did very well at the LVN volume buttons, and it mostly worked in the area marked by the two teal arrows above. and this area is called the Value area, which represents 70% of the volume of transactions occurring in this area.

Overall, the VPVR indicator can be very helpful for finding significant areas of support and resistance, and it is very useful for assessing how the price will move through specific areas. And currently it is being used by a lot of traders.

What is Helicopter Money?

Imagine one fine morning when you wake up and get a bank message saying your balance on your account is plus $ 2,500, which is the amount the government sends to everyone in water to spend. That may sound futuristic – but it’s true, and is being done in many countries around the world during economic turmoil. That is the helicopter money.

When the sun is drought and the rain falls, what’s the first thing you will do with this heavenly money ?, not all, but certainly most people go out to the street to shop and eat for fun. satisfying the days of austerity because the economy goes down.

The concept of helicopter money was seriously debated by economists for the past few years, and is gaining popularity. That’s because despite the trillions of dollars, euros, yen and pounds that central banks have pumped into the global financial system since the credit crisis of 2008, global economic growth has slowed. once again.

Theoretically, helicopter money is given directly to consumers, will directly pull people to the store to spend, boosting confidence in the economy. That increased demand will allow prices to rise again, an important step because slippage prices, known as deflation, are seen as posing a risk of a prolonged economic recession.

What is pre-helicopter policy?

Helicopter money is a term referring to a kind of aggressive monetary stimulus strategy to increase inflation, increase economic output and the need to buy. Although this strategy seems theoretically viable, from a practical standpoint it is seen as a non-traditional monetary policy tool, only hypothetical because it is difficult to implement.

In March 2020, the US Federal Reserve cut interest rates to 0% to combat the Covid-19 pandemic and the gloomy outlook of the world economy. It is followed by rate cuts by most central banks in the world, both to protect the economy and also to protect the national currency.

Since most governments are unwilling or unable to pursue fiscal stimulus by reducing taxes or increasing spending, pressure is on forcing central banks to gain deeper access to their toolkit for Unique policy tool like never before. Helicopter money is back on the agenda as the central bank’s purchase of government bonds – a policy known as quantitative easing – has pushed yields in some bond markets down to levels. Therefore, the scope of stimulating the economy by pushing down borrowing costs is limited.

The origin of the helicopter money

Nobel Prize-winning economist Milton Friedman introduced the concept of helicopter money in 1969. He envisioned a penguin flying in a field and dropping banknotes from the sky as an experiment to see how the With an ever-increasing increase in the money supply, what will people do to spend and save.

This idea made Ben S. Bernanke famous in 2002 when, as governor of the US Federal Reserve (Fed), he mentioned it while arguing that a central bank always had. inflation can be prevented if needed. He was immediately nicknamed “The Helicopter Ben”, despite being a hero during the 2008 recession and also one of the most successful presidents in Fed history.

In a blog post in April 2016, Ben said helicopter money could be the best alternative currency available in some extreme cases. In today’s debates, they envisaged that the helicopter money would be distributed either by crediting it on people’s bank balances or in the form of tax breaks. Crucially, it will come from a one-time-created central bank, rather than being borrowed or spent by the government.

Most recently, the US Treasury Secretary also mentioned this as a solution to save the US economy from the economic crisis of the Covid-19 pandemic.

Discuss

Helicopter money proponents argue it may be less risky than quantitative easing (QE), which is blamed for promoting what is seen as a bubble in stock and bond markets. bridge.

Opponents pointed out that helicopter money was not really free. Printing more money reduces the monetary value of people holding savings in their accounts, the same way that the more Bitcoin mining companies flush the market, the more Bitcoin value will be equivalent in time. there. Conversely, the more Bitcoin is accumulated and held in large wallets, the more it will cost.

Others say helicopter money is an overly complex alternative to the government’s stimulus measures. Also, the danger is that helicopter money can trigger inflation much higher than the 2%, “nice” level for a growing economy.

What is Quantitative Easing (QE)?

Quantitative Easing (QE), English for Quantitative Easing, is a market behavior (usually performed by central banks) in which liquidity and inflation increase, with the goal of stimulating the economy of Vietnam. push businesses and consumers to borrow and spend more.